Summary:
Kindbody is exploring a sale amidst funding challenges.
The startup is seeking to raise $10 million for operational sustainability.
Previously aimed for a $30 million to $50 million funding round, which failed.
Valuation has plummeted from $1.8 billion to an estimated $400 million.
The company has closed multiple clinics and reported a material cash burn.
Kindbody's Dilemma
Fertility startup Kindbody is currently weighing the option of selling itself after a recent funding round fell through. The company is actively seeking to raise $10 million to maintain operations during this challenging time, as reported by Bloomberg.
Funding Challenges
Earlier this year, Kindbody aimed to raise a larger funding round of $30 million to $50 million, but the deal failed to close in September due to investor concerns regarding the company's finances. As a result, its valuation has significantly decreased, dropping from $1.8 billion in 2023 to an estimated $400 million recently.
Potential Sale and Investor Relations
According to sources, Kindbody has received takeover proposals from potential buyers while also soliciting bridge financing from both new and existing investors. However, a spokesperson for Kindbody has publicly denied these claims, labeling them as âcategorically false.â
Operational Adjustments
This year, Kindbody has had to close multiple clinics and has adjusted its revenue forecast downwards. The company has described its cash burn situation as âmaterial,â prompting urgent funding efforts to stabilize its operations.
Conclusion
Founded in 2018, Kindbody is one of the largest fertility service providers in the U.S., specializing in services like in-vitro fertilization and egg freezing. The companyâs current predicament highlights the volatile nature of startup funding and the challenges even established players face in maintaining financial stability.
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